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EXECUTIVE WHITE PAPER



Harnessing the Global Talent Pool
to Accelerate Innovation

Introduction
In our hyper-competitive, always-connected world, organizations are
increasingly becoming focused on improving both their speed to market         What you will learn by reading
and their revenue per headcount. In this environment, more senior leaders     this paper:
every day are seeing innovation as the primary way to gain competi-
tive advantage and to simultaneously increase revenue and cut costs.          	1.	 Why having an external
At the same time, organizations are struggling to find ways to accelerate          talent strategy is becoming
their pace of innovation without escalating their costs faster than their          increasingly important
budgets will allow.                                                           	2.	 How leading organizations
                                                                                   manage their open inno-
The increasing demands for speed and efficiency are causing organiza-              vation and crowdsourcing
tions to become ever more virtual and flexible, to utilize more variable           efforts
resources, and to add and shed employees with greater regularity (often
with both happening in the same organization at the same time). The           	3.	 Strategies for attracting
progressively dynamic nature of the workforce inside organizations is              talent to your organization’s
making it more difficult for organizations to attract, develop, and retain         innovation efforts
the best talent while simultaneously meeting the fiscal realities of the
business. This is causing many organizations to move from a talent own-
ership mindset to a talent attraction mindset. In a talent ownership world,
recruitment and the hiring transaction are king. But in a talent attraction
world, successful organizations are those that master the art of building
and maintaining talent communities that keep talent connected to
the organization even when they are not employed by it. Consciously
                                                                                InnoCentive and the author
creating an external talent strategy is therefore essential to success.
                                                                                of this paper, Braden Kelley,
                                                                                  hosted a webinar on this
                                                                                  very topic. Click here to
The talent market relationship changes are not just happening at the                  access the replay.
individual level. Change is also happening at the organizational level, as
organizations themselves are moving from a fortress mentality, where
all work is secret and kept inside the organization’s four walls, to an
integrated, global economy with an interconnected web of suppliers and
distribution channels – where being the partner of choice in your industry
will be increasingly important.


Silicon Valley icon Bill Joy once famously said, “There are always more
smart people outside your company than within it.” In this new world
of work, organizations must begin accepting that the most valuable


                                                                                                                   1
Harnessing the Global Talent Pool to Accelerate Innovation


employees will now be those that not only do good work, but who also
serve as a force multiplier for their organizations by being good at orga-         “Open innovation has
nizing and orchestrating the innovation efforts of others who do not even        proved to be a successful
work for the company. And ideally, you will want to evolve to a place where        business strategy for
even those who do not work for you actually want to work with you. In                 General Mills.”
this brave new world, you must have strategies in place for attracting both
internal and external talent to your innovation efforts.
                                                                                        Mark Addicks

Section 1. Why Having an External Talent Strategy
is Becoming Increasingly Important
The old way of winning the talent wars was to search for and hire the very
best talent and keep them inside your own four walls by offering them
competitive compensation, benefits, and perks. Your hope was that your
talent is better than your competitors’ talent. But over the last couple of
decades, companies have increasingly found that employees who pursue
what they do with passion will outperform an employee with a gun to
their head every time. Circuit City learned very publicly that people are
not commodities and went out of business from treating them as if they
were. At the same time, we know that diversity is very important and
hard to foster internally. And so it is to get to this diversity of thought in
order to accelerate product launch and innovation timelines that com-
panies must open up – it is a global economy with a global talent pool.
                                                                                 It is to get to this diversity
The question becomes: what is happening at the micro level with this                of thought in order to
global talent pool? Well, the world continues to move away from being a          accelerate product launch
place where employees expect to have jobs for life, and fight against any         and innovation timelines
change to this paradigm, to a world where portfolios, personal brand-            that companies must open
ing, and project-based work will become more common in an increasing             up – it is a global economy
number of industries. The evolving world of work is becoming a world in
                                                                                  with a global talent pool.
which individuals will need to be really good at collaborating and play-
ing well with others, while also honing their skills at standing out from
the crowd. At the same time, the external perception of your network
value will expand from a focus on internal connections to also include
the talented minds you might know outside the organization that can be
brought in on different projects or challenges.

At the macro level, we are also confronted by an economy right now
that is characterized by high unemployment – especially for the young.
And for those that have jobs, many are underemployed. Meanwhile, at
the other end of the age spectrum, many baby boomers will continue
to look to make money and stay involved in the workplace in significant
numbers. And for those not retiring who still have jobs, many employees
now are doing more work but feeling less engaged. When you combine               “Our agenda is very much
the macro and micro pictures, you can see that there is an army of talent         around open innovation.”
out there looking to build their resumes or their balance sheets by work-
ing on interesting challenges and projects.                                             Andy Shilton

As your organization opens up and crafts a formal external talent strategy,
there are several ways external talent can help benefit your organization.




                                                                                                                  2
Harnessing the Global Talent Pool to Accelerate Innovation


Increased Speed:
 •	 External talent networks can form an expanded rolodex of                  After the Exxon Valdez oil spill
    experts that you can consult with to expand your knowledge on            in Prince William Sound Alaska,
    a particular search area or market and give you a running start            a method was needed by the
    instead of a standing one.                                                    Oil Spill Recovery Institute
                                                                                 (OSRI) to break the viscous
 •	 You can use your external talent strategy to find existing solutions
    from outside your industry. One example of this is a tire company           shear of crude oil under cold
    adapting existing technology for cutting cheese to cutting                   weather conditions to allow
    rubber. Another is InnoCentive client OSRI, who used concrete                 oil to flow to a pump inlet.
    construction principles for the purpose of oil spill cleanup (see         Basically, the pumps could not
    sidebar).                                                               handle the near-solid oil sludge.
                                                                                 A Challenge was posted on
 •	 To accelerate innovation and product development timelines, many
                                                                              InnoCentive.com and exposed
    companies strategically partner with external talent to advance
    their projects and help fight through roadblocks or work on other
                                                                                  to a global community of
    components when the lead team is off the clock. Dissecting work               hundreds of thousands of
    and distributing it to the individuals, groups, or partners that        Solvers. Eight weeks later, many
    can best complete the work is an essential component of open               solutions had been proposed,
    innovation strategy.                                                       but the winning solution was
                                                                            submitted by an Illinois chemist
                                                                                 who once poured concrete
Increased Success:
                                                                                  over the summer to help a
 •	 You can form a relationship with a particular expert and work              neighbor. The $20,000 award
    together to solve a problem, to evaluate a range of potential             winning solution was based on
    solutions from internal folks, to tap expertise you lack currently
                                                                            a technique that had been used
    in your organization, or to add diversity of thought.
                                                                               for years to vibrate and move
 •	 You can use your external talent strategy to engage a large             viscous concrete. As a result, the
    number of potential solvers on a tough problem. Through open              oil industry solved a decades-
    innovation and crowdsourcing, Roche found a solution to a               old problem within two months
    problem it had been struggling with for fifteen years by engaging            of posting the Challenge to
    the InnoCentive global solver community. At the same time, the              InnoCentive’s crowdsourced
    company validated that the approaches it had already tried were
                                                                                 problem solver community.
    the logical and correct ones.

 •	 When you engage external talent, you can collect lots of little ideas
    from outside, and connect them internally, uncovering some really
    big ideas that properly applied and executed can lead to some
    great new breakthrough innovations.
                                                                              Roche found a solution to a
                                                                            problem it had been struggling
Increased Learning:                                                              with for fifteen years by
 •	 An under-appreciated and under-utilized benefit of working with            engaging the InnoCentive
    external talent is to use it to learn new problem solving techniques     global solver community. At
    by analyzing how the external talent solved the problem, to learn        the same time, the company
    new technical skills not held internally by having external talent      validated that the approaches
    train internal talent, and by encouraging information sharing from       it had already tried were the
    the outside-in from external talent working in different disciplines.       logical and correct ones.

Teamwork and Collaboration:
 •	 An increasing number of problem solvers are working together
    to solve challenges posed by organizations and this collaboration
    and teamwork is yielding higher quality solutions. Research by




                                                                                                                 3
Harnessing the Global Talent Pool to Accelerate Innovation


    EMC into their own internal innovation challenges has shown that
    teams were more likely to successfully create winning challenge
    entries. InnoCentive, for instance, has responded to this behavior
    by creating more collaborative features for its global solver
    community to use in responding to challenges.


Consider scale for a moment. A person delivering a ton of value does
not need a ton of headcount anymore if they are employing an effective          Two of the most important
external talent strategy. In an era where organizations are focused on               job skills in this new
increasing productivity and output without changing the number of                world of work will be the
headcount (focusing on revenue or profit-per-head), smart employees               ability of the individual
and business units will increasingly focus on being a force multiplier –          and the organization to
getting more work done with the same number or even less headcount.                deconstruct the work
                                                                                  into portable units that
Two of the most important job skills in this new world of work will be the       can be executed by a mix
ability of the individual and the organization to deconstruct the work into       of internal and external
portable units that can be executed by a mix of internal and external talent,       talent, and construct
and construct a project plan for distributing, aggregating, integrating,               a project plan for
and executing the component parts to achieve the overall project goal.           distributing, aggregating,
                                                                                integrating, and executing
But to maximize the efficiency and effectiveness of your work with                 the component parts
outsiders – as well the output – you need to be strategic in your                  to achieve the overall
approach because the speed of adaptation (your ability to adapt and                      project goal.
integrate work from outside into the inside) will become more impor-
tant. And the flexibility you show as an organization and the ability of
your employees to execute under immense market and customer
pressures will become increasingly important as well. You must be
strategic because ultimately you want to design scalable external talent
strategies, policies, and processes.


Section 2. How Leading Organizations Manage
Their Open Innovation and Crowdsourcing Efforts
Although there are simple and cost effective ways to jumpstart your
efforts – for example, leveraging a company like InnoCentive to host                 Although there are
prize-based challenges in order to rapidly find solutions to your most           simple and cost effective
pressing problems – leading organizations that wish to truly embrace              ways to jumpstart your
open innovation and crowdsourcing do so through careful planning.                   efforts – for example,
When seeking to engage external talent, one of the first of many questions         leveraging a company
you must first ask yourself is: Why are we doing this? What do we hope            like InnoCentive to host
that external talent can achieve for us that our internal talent cannot (or       prize-based challenges
should not) achieve, and how do we integrate the two together?                     in order to rapidly find
                                                                                   solutions to your most
                                                                                     pressing problems –
The second question leading organizations in open innovation ask them-
                                                                                leading organizations that
selves is: Why will they care? And one good place to start in answering
                                                                                    wish to truly embrace
this difficult question is to ask: What kind of organization do you have? Do
                                                                                    open innovation and
you have a product-driven organization like Microsoft that is very much
                                                                                    crowdsourcing do so
organized around products? Do you have a customer-driven organiza-
tion like Hallmark that is organized around customer moments instead of
                                                                                 through careful planning.
around products? Or do you have a purpose-driven organization? While



                                                                                                              4
Harnessing the Global Talent Pool to Accelerate Innovation


it does not technically matter what kind of organization you have, the key
is to find something that not just your employees will engage with, but              One must be careful not
that your customers and partners will engage with as well. This could be              to become too focused
purpose, but it could also be love for a brand or a well-designed, emotionally       on ideas. Great ideas fail
-connected product.                                                                  all the time – poor value
Other questions to ask:                                                                translation, poor value
                                                                                     access, poor timing, and
  •	 In our organization, where does open innovation fit in our overall                 so on. Rather, getting
     innovation efforts?                                                              to creative solutions to
  •	 How are we looking to connect?                                                 problems and challenges is
                                                                                    key to innovation success.
  •	 Do we want to build our own proprietary global sensing network
     that allows us to pull together insights and ideas from lots of
     different types of sources in different locations?
  •	 Or, do we want to utilize external service providers like InnoCentive
     to get up and running faster or go wider than our own proprietary
     networks can go?
  •	 Are we looking for crowd labor or creativity, or are we looking
     to engage in open innovation or civic engagement in creating
     innovative solutions?
  •	 Are we looking for possible solutions to problems that we have
     already identified?
  •	 Are we looking with current and potential suppliers at the                     Alph Bingham and
     intersection of what is needed and what is possible?                           Dwayne Spradlin
                                                                                    identified ten different
  •	 Or, are we looking more broadly to identify new insights through
     which we can drive our innovation efforts?                                     resourcing options in
                                                                                    their book The Open
Note that one must be careful not to become too focused on ideas. Great
                                                                                    Innovation Marketplace:
ideas fail all the time – poor value translation, poor value access, poor timing,   	 1.	Internal
and so on. Rather, getting to creative solutions to problems and challenges
is key to innovation success.                                                       	 2.	 Contract Research
                                                                                          Organization
Another important questions is: What tool is best for this problem? We
have all heard the saying that if you have a hammer every problem looks
                                                                                    	 3.	 Electronic Requests
like a nail. Well, when it comes to open innovation and crowdsourcing, there              for Proposal (e-RFP)
are lots of tools that we can use, but only if we first understand the nature       	4.	Off-Shoring
of the work we are trying to get done. Is it a creative piece of work that we
can put out to a community like 99Designs? Or do we just need someone               	5.	Crowdsourcing,
to help us temporarily through a place like PeoplePerHour? Or, perhaps we               Ideation
are trying to solve problems, both big and small, and want to leverage a
company like InnoCentive to create and tap into both internal and external          	6.	Crowdsourcing,
communities of problem solvers to accelerate our innovation efforts.                    Finished Product

                                                                                    	 7.	 University Contracts
Smart organizations identify the different work and challenge scenarios
they expect to face over time and then identify which resourcing                    	8.	Consulting
option(s) make the most sense for each scenario. They then work to form
the relationships and agreements necessary with firms like InnoCentive              	 9.	 Right of First Refusal
to make sure that they will have reliable resources in place for when
                                                                                    	10.	 Joint Venture
they seek to utilize a particular type of resource to tackle the matching
challenge or work scenario.


                                                                                                                   5
Harnessing the Global Talent Pool to Accelerate Innovation


Successful organizations have a plan for how they are going to interface
with external resources and how they are going to bring ideas and potential      “We decided to embrace
solutions in house for further development and launch. What will the               open innovation at
cultural obstacles be? You must consider what the potential cultural obstacles      Psion to be faster
might be to engaging external talent in your organization. P&G had to work         and competitively
very hard to change of its culture from ‘Not Invented Here’ to one where             unpredictable.”
people embrace new things being ‘Proudly Found Elsewhere.’
                                                                                       John Conoley
Some of the reasons that you may face resistance in implementing an
external talent strategy include beliefs that career advancement comes
from increasing the number of headcount managed, a fear of failure, a lack
of management support, and people not wanting to go outside their com-
fort zones (‘I get paid to manage and make things incrementally better’).
But when people start to hear stories about some of the successes, see
some proof of the benefits, and see other people get recognized for
utilizing external talent, acceptance of an external talent strategy starts to
spread. And when senior leadership or middle management start talking
about what is being done with external talent, and people using external
talent start training their peers on what they are doing, you know people
are starting to fully embrace your external talent strategy.


So what do leading organizations do to encourage the successful use of
external talent?

They build a solid foundation:

 1.	 Seek to understand where the challenges will lie in the
     transformation

 2.	 Have passionate business owners                                                 When people start
                                                                                    to hear stories about
 3.	 Secure top level support                                                     some of the successes,
 4.	 Make a long term commitment to the use of external talent                     see some proof of the
                                                                                  benefits, and see other
 5.	 Negotiate master agreements with external talent providers at               people get recognized for
     the center                                                                   utilizing external talent,
                                                                                 acceptance of an external
 6.	 Create a common language of innovation and external talent                     talent strategy starts
 7.	 Implement the processes and systems to manage and measure                            to spread.
     innovation efforts


They get strategic:

 1.	 Create an external talent strategy

 2.	 Make a plan for achieving the strategy

 3.	 Attach goals to the strategy (e.g., P&G’s 50% goal)

 4.	 Communicate the goals of the strategy and measure
     goal achievement




                                                                                                               6
Harnessing the Global Talent Pool to Accelerate Innovation


They focus on communications and ownership:
                                                                                      “Innovation is fostered
  1.	 Do not underestimate the importance of communications,
      education, and dialogue
                                                                                    by information gathered
                                                                                      from new connections;
  2.	 Create guidelines for when and how to use different external                      from insights gained
      talent sources                                                                   by journeys into other
                                                                                        disciplines or places;
  3.	 Have someone own and manage the external innovation efforts                       from active, collegial
  4.	 Have owners and champions in place in different business units
                                                                                    networks and fluid, open
      or product groups
                                                                                      boundaries. Innovation
                                                                                        arises from ongoing
  5.	 Educate employees on how to engage owners and champions                      circles of exchange, where
                                                                                       information is not just
                                                                                      accumulated or stored,
They continuously reinforce their efforts:                                          but created. Knowledge
                                                                                     is generated anew from
  1.	 Recognize and reward those who go outside                                     connections that weren’t
  2.	 Weave external focus into internal systems (e.g., innovation
                                                                                            there before.”
      system prompts)
                                                                                    Margaret J. Wheatley
  3.	 Get cross-functional input into problem definition and                       author of Leadership and
      challenge formation                                                              the New Science

  4.	 Make resources available for integration

  5.	 Work to make the organization more flexible and adaptable


In addition, successful organizations understand that it is about making
and maintaining connections and community – you build it for when you
need it, instead of building it when you need it. Successful organizations
understand that attracting and managing external talent is as important as
finding and hiring the best internal talent, and are changing their budget
allocations to fit this new paradigm. The role of HR in the near future will not
be just to recruit, develop, and manage staff, but also to build and curate
talent pools. The HR profession will have to build new core competences
in network orchestration and managing talent – no matter where the talent
lives (inside or outside the organization). It is time to start preparing.
                                                                                   The role of HR in the near
                                                                                     future will not be just
                                                                                    to recruit, develop, and
Before moving on to the final section, let us look at a few brief examples         manage staff, but also to
of different companies engaging external talent for business success and            build and curate talent
one case study of a leader pushing farther:                                        pools. The HR profession
  •	 Threadless decided to base their whole business on external talent              will have to build new
     and build a community of designers and customers that they could                 core competences in
     leverage to come up with the t-shirt designs that they sell.                    network orchestration
                                                                                   and managing talent – no
  •	 Quirky has taken the Threadless model of utilizing external talent             matter where the talent
     to simultaneously make invention accessible and build a consumer
                                                                                    lives (inside or outside
     products company. You submit your idea, the community curates
                                                                                       the organization).
     it, the company evaluates it, and actually produces and sells the
     chosen inventions online, and even at a handful of retailers.




                                                                                                                 7
Harnessing the Global Talent Pool to Accelerate Innovation


 •	 P&G went outside with a plastic technology and created a joint
    venture with competitor Clorox that focuses on trash bags, food             “There is the trivial – my
    storage, and related areas.                                                  apologies to Dell and
 •	 Intuit uses its Collaboratory web site to connect with entrepreneurs         Starbucks – where we
    and to publicize their open innovation challenges, and their Labs          use the crowd to provide
    web site to engage with the developer and customer communities                feedback on product
    to get immediate feedback on some of their experiments in order              features. And there is
    to engage in some level of co-creation.                                      the profound – where
                                                                                 we use adjacent areas
 •	 Psion Teklogix has built one of the more robust corporate open
    innovation communities – Ingenuity Working – complete with a
                                                                                of expertise to cast new
    video from their CEO front and center.                                       light on scientific and
                                                                               industrial challenges (the
 •	 SAP has started The Global SAP Co-Innovation Lab Network (aka                 InnoCentive model).”
    COIL) with HP, Intel, NetApp, Cisco, VMware, and F5 Networks to
    facilitate project-based co-innovation with its members and to               Haydn Shaughnessy
    enhance the capabilities of SAP’s partner and customer ecosystem
                                                                                      Forbes
    through an integrated network of world-wide expertise and best-
    in-class technologies and platforms.

 •	 MyStarbucksIdea.com is an example of engaging the creative
    energy outside your organization that most companies will
    not want to follow. They throw things wide open for all idea
    submissions, not focused on any particular challenges, for all
    to see. As a result, Starbucks exposes the company to the risk
    of brand equity destruction from not following through on
    suggestions. At the same time, this approach provides free
    market research for competitors and creates a lot of sifting and
    communications work for internal resources.


Procter & Gamble (P&G Connect + Develop) –
A Case Study (A Leader Pushes Forward)
P&G strives to improve workforce productivity by controlling headcount
while also improving revenue-per-head. It is also moving from a supplier
mindset where P&G dictates goals and price to a goal mindset where
there is possibly shared risk with partners (i.e., the partner is willing to
invest because of the scale that P&G brings).




                                                                                                             8
Harnessing the Global Talent Pool to Accelerate Innovation


P&G has been working for over a decade to establish itself as a partner of
choice and has recognized that it is important to have a stable of partners      P&G has worked for years
with whom it can collaborate. The company counts on its precious                      to move from a
internal resources to not only do work, but also to build capabilities, to          ‘Not Invented Here’
know what advancements are being made outside, to track promising                mindset to ‘Proudly Found
opportunities being developed externally, and so on. P&G has worked                 Elsewhere’ mindset.
for years to move from a ‘Not Invented Here’ mindset to ‘Proudly Found
Elsewhere’ mindset. This has required:

 •	 Top management deciding and overtly communicating that this
    is important

 •	 Making it a part of the corporate strategy

 •	 Coupling its external pursuit with a goal – such as ‘50% of new
    products must involve outside collaboration’

 •	 Weaving it into the systems to get it into the culture (e.g., tools
    should prompt you to ask whether you have considered open
    innovation, who are you using, and enter this into the historical
    record)

 •	 Rewarding and recognizing open innovation efforts in a way that
    puts them on par with internal innovation efforts


P&G thinks of its internal resources as the castle keep, and develops local
resources that it can turn on as needed. It has a tiered system of partners
based on cost, location, and capabilities. The company also maintains
its own collection of 85 networks (many proprietary, but also including
P&G’s Connect+Develop and InnoCentive’s global solver community).
P&G also has an internal search process, which involves resources
focused on creating ecosystems locally in different geographies around
the world – which it can then mine and look for solutions, and some of
those turn into deals (managed by deal managers).


As it looks into the future, P&G will balance the situations where it looks
to partners to be their R&D muscle in a particular area (allowing them
to minimize their internal investments in that area) with areas where the
partners not only develop that which P&G asks for but to also proactively               To support the
ante up and bring ideas to the company where the partners develop the                increasingly internal/
idea and help to share the risk.                                                  external flavor of its R&D
                                                                                  efforts in the future, more
To support the increasingly internal/external flavor of its R&D efforts in the   of P&G’s R&D roles will be
future, more of P&G’s R&D roles will be focused on the integration of external   focused on the integration
projects – meaning that increasingly the company will value for these roles          of external projects –
broad skills across functions as well as soft skills to foster a collaborative    meaning that increasingly
approach. At the same time, for P&G to continue to be successful, it feels         the company will value
that it must be agile (which is why agility was added to its employee suc-       for these roles broad skills
cess drivers). And finally, despite the increasing involvement of people           across functions as well
from outside in its new product development, there must be no decrease             as soft skills to foster a
in the presence of passionate owners for the business – people who work            collaborative approach.
really hard and feel that they are making a difference for consumers.




                                                                                                                9
Harnessing the Global Talent Pool to Accelerate Innovation


Section 3. Strategies for Attracting Talent to Your
Organization’s Innovation Efforts                                                  “Using social media tools
                                                                                   and sites to ask questions
Having an external talent strategy and using it to build an external talent
                                                                                   is part of a broader trend
community is going to become a crucial component of the continued
                                                                                  called crowd-sourcing. This
success of your business. There is an innovation war beginning, and you
                                                                                 is tapping into the collective
need to make sure you are fighting it outside your organization — not inside.
                                                                                  intelligence of the public to
                                                                                  complete a task. One of the
When it comes to attracting talent to your organization’s innovation efforts,       best-known examples of
the basic rules of social media are very relevant. Listen first, see what is            crowd-sourcing is
important to people and where value is being created (and where it is miss-         InnoCentive, which uses
ing), then add value to the conversation. Being successful in the innovation        crowd-sourcing to solve
aspects of social business requires an organization to establish a place and a         corporate research
reason for mutually beneficial dialogue to occur. A typical staffing strategy              problems.”
focuses on finding and bringing the very best talent inside the organization
(talent ownership). In contrast, a successful external talent strategy must            Steve King
instead act more like the sun, attracting external talent into the orbit of      US News and World Report
your organization so that you can build and maintain a relationship with
them without bringing them into the organization (talent attraction).


Organizations that continue to thrive will develop the ability to:

 1.	 Harness and tap into expert communities (like InnoCentive’s network
     of solvers)

 2.	 Identify and gather technology trend information, customer insights,
     and local social mutations from around the globe

 3.	 Mobilize the organization in organic ways to utilize resources and
     information often beyond its control

 4.	 Organize and execute production and marketing predictably and
     efficiently in the middle of all this complexity


As a result, your external talent strategy must accumulate energy and then
unleash it in a focused direction. And part of the way to do that is by
establishing a common language of innovation. The process begins by
defining what innovation means to your organization. Consider looking at
this as the WHO – WHAT – WHEN – WHERE – WHY – HOW of innovation:

 •	 WHO is to be involved in your innovation efforts?

 •	 WHAT does innovation mean to you? WHAT types of innovation
    are you focused on?

 •	 WHEN will you be looking for innovation input?

 •	 WHERE can people go to find out more? WHERE do they go
    to contribute?

 •	 WHY should people want to participate?

 •	 HOW can they participate?




                                                                                                                  10
Harnessing the Global Talent Pool to Accelerate Innovation


A working definition of innovation is: “Innovation transforms the useful
seeds of invention into solutions valued above every existing alternative                           A working definition of
– and of course widely adopted.” It is important to mention that in the                            innovation is: “Innovation
same way that innovation is all about value, building a successful external                           transforms the useful
talent strategy and attracting talent to your organization is also all                               seeds of invention into
about value and these same components. You must try to identify as an                               solutions valued above
organization what resources you already have (or could create) that will                           every existing alternative
have some value to the external talent community that you are trying                                 – and of course widely
to attract. These sources of value to the external talent community                                         adopted.”
could be financial, informational, educational, social, or come from
another store of value.


                      Building an External Talent Community



                                        Universities

                                                                   National
                Entrepreneurs
                                                                 Laboratories




       Alumni and
                                                                                Suppliers
        Retirees
                                       Organizations




           Partners                                                        Agencies



                                                       Professional
                           Customers
                                                       Associations


                                                              Copyright: http://bradenkelley.com



It is also important to give people a reason to want to connect with you
and to stay close – and yes, hopefully contribute over time. In addition to                         In addition to identifying
identifying the value that you can bring to the external talent community,                           the value that you can
you must also identify which connection points will multiply the attractive                        bring to the external talent
power of the sources of value you choose to focus on. There are three                              community, you must also
primary connection points to consider:                                                             identify which connection
 1.	 Passion: One of the ways that you can attract people to your                                    points will multiply the
     innovation efforts is to leverage the power of passion. Seek to                                 attractive power of the
     identify what people are passionate about when it comes to your                                  sources of value you
     company or your products. Passion can be extremely contagious.                                    choose to focus on.
     Is there a way that you can inject the passion that people may
     have for your company or products into your external talent
     community? Why might people want to help you innovate?

 2.	 Purpose: Another connection point to consider is to tap into the
     power of purpose. Not all organizations are committed to serving a
     larger social purpose, but all can consider introducing elements of
     public outreach or philanthropy that the external talent community




                                                                                                                                  11
Harnessing the Global Talent Pool to Accelerate Innovation


      can engage with and feel good about contributing to. Are you
      building walls to keep people out? Or are you creating something         When you bring the right
      that people can feel a part of?                                          sources of value together
    3.	 Fun: Do not forget the power of fun. One of the ways of connecting             with the right
        people to your external talent community is to have something fun        connection points, that
        for people to do. Recognize people for their participation in your          is when the magic
        external talent community in fun and different ways to keep them              happens and a
        interested and engaged, and have some fun reinforcing the common           community starts to
        language of innovation that you share with people.                        grow its membership
                                                                                     and participation.
When you bring the right sources of value together with the right con-           We are not just seeking
nection points, that is when the magic happens and a community starts             to build a community,
to grow its membership and participation. We are not just seeking to            but to activate it as well
build a community, but to activate it as well (to get people engaged,           (to get people engaged,
contributing, discussing, connecting, etc.). Ideally what we are trying to      contributing, discussing,
do in our interactions with our external community is to engage them at              connecting, etc.).
as high a level as possible to maximize our chances of creating innovation
with the external community in much the same way that we try to unlock
higher levels of employee engagement.


        Insights                Innovation               Flexibility
                    	                     	

	      Passion            Fun              Purpose
              	                      

	 Creativity                       Trust
            	

	     Initiative                 Respect                                       Key Things to Remember:
                	                                                              	1.	 Carefully craft
                                                                                    your language and
	     Intellect                 Leadership
               	                                                                    communications

                                                                               	2.	 Give people a way to
	     Diligence                 Management
               	                                                                    connect with you

          Fear                  Obedience                   Greed              	3.	 Do not just look to
                    	                    	                                          extract value from your
                                                  The Innnovator’s Framework        network, think about
                                                                                    what value you can
                                                                                    put into it
Doing these things may seem like a lot of work and communication
upfront, but it pays off, because you give people a much better idea of        	 .	 Sometimes that value
                                                                               4
how to engage and a much stronger foundation on top of which their                  is connecting external
creative and innovative inputs and ideas can thrive.                                participants not just to
                                                                                    you, but to each other
As organizations do the hard work of building an external talent strategy
and begin laying the foundation for open innovation success, the smart
                                                                               	5.	 Build your network
ones (no matter their level of innovation maturity) leverage the incred-
                                                                                    before you need it,
ibly diverse and deep external talent networks that companies like                  not after
InnoCentive have spent years building, cultivating, and curating. Solver



                                                                                                               12
Harnessing the Global Talent Pool to Accelerate Innovation


communities like InnoCentive’s are purpose-built for solving difficult
challenges with global implications, and tapping into existing talent
networks helps you get your external talent strategy moving faster, while
also providing a level of quality and diversity that will always be valuable,
even as your open innovation efforts mature.



Conclusion
This paper covered several reasons why having an external talent strategy
is becoming increasingly important, and how building and properly                  InnoCentive and the
executing one can help you harness the global talent pool to accelerate            author of this paper,
innovation. It also provided an in-depth look at how leading organizations        Braden Kelley, hosted
manage their open innovation and crowdsourcing efforts – complete                 a webinar on this very
with checklists to get you off to a strong start in your own efforts. And           topic. Click here to
finally, we have looked at some frameworks and strategies that you can
                                                                                     access the replay.
leverage to attract talent to your organization’s efforts. The only thing
left is to get started.


In this new talent attraction world, will your organization be one of those
to master the art of building and maintaining talent communities that
keep talent connected to your organization even when they are not
employed by it?


You must consciously create and execute an external talent strategy if
you have any hopes of succeeding in what will become an increasingly                Will you adapt your
competitive marketplace for external talent. Will you establish yourself as     organization to encourage
the partner of choice in your industry as your competitors begin to move             the development
from a fortress mentality to embrace the increasingly integrated global           of employees that are
economy and interconnected web of suppliers and distribution channels?             increasingly good at
                                                                                  being force multipliers
Will you adapt your organization to encourage the development of                 by effectively leveraging
employees that are increasingly good at being force multipliers by effec-           your external talent
tively leveraging your external talent communities to get more work             communities to get more
done faster, more cost effectively, and with less risk?                           work done faster, more
                                                                                   cost effectively, and
Will you work to embed the resource flexibility and availability into your             with less risk?
organization necessary to quickly and effectively integrate promising
ideas, products, and services into your organization and its operations
and marketing machinery?


If you are already started down your innovation path, it is not too late
to take a step back and define a common language of innovation and
to identify the sources of value and primary connection points around
which to build strong external talent communities. There is no time like
the present to stoke your innovation bonfire, using the global talent pool
to get it burning hot and to accelerate your innovation efforts faster than
those of your competition.




                                                                                                             13
Harnessing the Global Talent Pool to Accelerate Innovation


What are you waiting for? Rally your leadership and build your external
talent strategy. InnoCentive and other service providers stand ready to                                                         For more information
help you solve your difficult innovation challenges and build your talent                                                       on how you can easily
network to accelerate your overall innovation capacity.                                                                       run your own Challenges
                                                                                                                              to rapidly solve problems
Authored by: Braden Kelley                                                                                                       and accelerate your
                                                                                                                                innovation outcomes,
                                                                                                                             visit www.innocentive.com
                                                                                                                             or call 1-855-CROWDNOW
                                                                                                                                   to speak directly
                                                                                                                                  with an Innovation
                                                                                                                                   Sales Consultant.




Braden Kelley is a Social Business Architect, innovation trainer, and the
author of Stoking Your Innovation Bonfire. He has been advising com-
panies on how to build online communities, engage external talent, and
improve their innovation success since 1996. Braden writes and speaks
frequently about innovation and social media. He has maximized profits
for companies while living and working in England, Germany, and the
United States. Braden earned his MBA from top-rated London Business
School and is an Innovation Excellence co-founder.


Quote Sources: Foodmanufacture.co.uk, 15inno.com, Leadershipnow.com,
Forbes, US News and World Report




About InnoCentive, Inc.
InnoCentive is the open innovation and crowdsourcing pioneer that enables organizations to solve their key problems by         610 Lincoln St, Suite 125
connecting them to diverse sources of innovation including employees, customers, partners, and the world’s largest problem     Waltham, MA 02451
solving marketplace. InnoCentive’s proven Challenge Driven Innovation methodology, community of millions of problem
                                                                                                                               USA
Solvers, and cloud-based technology platform combine to fundamentally transform the economics of innovation and
R&D through rapid solution delivery and the development of sustainable open innovation programs. Leading commercial,
government, and nonprofit organizations such as Booz Allen Hamilton, Eli Lilly and Company, Life Technologies, NASA,
                                                                                                                               Phone: +1-978-482-3300
nature.com, Popular Science, Procter & Gamble, Roche, Rockefeller Foundation, and The Economist partner with
InnoCentive to solve problems and innovate faster and more cost effectively than ever before. For more information, visit      Toll free: +1-855-CROWDNOW
www.innocentive.com or call 1-855-CROWDNOW.                                                                                    www.innocentive.com


InnoCentive and InnoCentive Challenges are registered trademarks of InnoCentive, Inc. Other product or service names
mentioned herein are the trademarks of their respective owners. 2012-0213

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Harnessing the Global Talent Pool to Accelerate Innovation

  • 1. ! ? EXECUTIVE WHITE PAPER Harnessing the Global Talent Pool to Accelerate Innovation Introduction In our hyper-competitive, always-connected world, organizations are increasingly becoming focused on improving both their speed to market What you will learn by reading and their revenue per headcount. In this environment, more senior leaders this paper: every day are seeing innovation as the primary way to gain competi- tive advantage and to simultaneously increase revenue and cut costs. 1. Why having an external At the same time, organizations are struggling to find ways to accelerate talent strategy is becoming their pace of innovation without escalating their costs faster than their increasingly important budgets will allow. 2. How leading organizations manage their open inno- The increasing demands for speed and efficiency are causing organiza- vation and crowdsourcing tions to become ever more virtual and flexible, to utilize more variable efforts resources, and to add and shed employees with greater regularity (often with both happening in the same organization at the same time). The 3. Strategies for attracting progressively dynamic nature of the workforce inside organizations is talent to your organization’s making it more difficult for organizations to attract, develop, and retain innovation efforts the best talent while simultaneously meeting the fiscal realities of the business. This is causing many organizations to move from a talent own- ership mindset to a talent attraction mindset. In a talent ownership world, recruitment and the hiring transaction are king. But in a talent attraction world, successful organizations are those that master the art of building and maintaining talent communities that keep talent connected to the organization even when they are not employed by it. Consciously InnoCentive and the author creating an external talent strategy is therefore essential to success. of this paper, Braden Kelley, hosted a webinar on this very topic. Click here to The talent market relationship changes are not just happening at the access the replay. individual level. Change is also happening at the organizational level, as organizations themselves are moving from a fortress mentality, where all work is secret and kept inside the organization’s four walls, to an integrated, global economy with an interconnected web of suppliers and distribution channels – where being the partner of choice in your industry will be increasingly important. Silicon Valley icon Bill Joy once famously said, “There are always more smart people outside your company than within it.” In this new world of work, organizations must begin accepting that the most valuable 1
  • 2. Harnessing the Global Talent Pool to Accelerate Innovation employees will now be those that not only do good work, but who also serve as a force multiplier for their organizations by being good at orga- “Open innovation has nizing and orchestrating the innovation efforts of others who do not even proved to be a successful work for the company. And ideally, you will want to evolve to a place where business strategy for even those who do not work for you actually want to work with you. In General Mills.” this brave new world, you must have strategies in place for attracting both internal and external talent to your innovation efforts. Mark Addicks Section 1. Why Having an External Talent Strategy is Becoming Increasingly Important The old way of winning the talent wars was to search for and hire the very best talent and keep them inside your own four walls by offering them competitive compensation, benefits, and perks. Your hope was that your talent is better than your competitors’ talent. But over the last couple of decades, companies have increasingly found that employees who pursue what they do with passion will outperform an employee with a gun to their head every time. Circuit City learned very publicly that people are not commodities and went out of business from treating them as if they were. At the same time, we know that diversity is very important and hard to foster internally. And so it is to get to this diversity of thought in order to accelerate product launch and innovation timelines that com- panies must open up – it is a global economy with a global talent pool. It is to get to this diversity The question becomes: what is happening at the micro level with this of thought in order to global talent pool? Well, the world continues to move away from being a accelerate product launch place where employees expect to have jobs for life, and fight against any and innovation timelines change to this paradigm, to a world where portfolios, personal brand- that companies must open ing, and project-based work will become more common in an increasing up – it is a global economy number of industries. The evolving world of work is becoming a world in with a global talent pool. which individuals will need to be really good at collaborating and play- ing well with others, while also honing their skills at standing out from the crowd. At the same time, the external perception of your network value will expand from a focus on internal connections to also include the talented minds you might know outside the organization that can be brought in on different projects or challenges. At the macro level, we are also confronted by an economy right now that is characterized by high unemployment – especially for the young. And for those that have jobs, many are underemployed. Meanwhile, at the other end of the age spectrum, many baby boomers will continue to look to make money and stay involved in the workplace in significant numbers. And for those not retiring who still have jobs, many employees now are doing more work but feeling less engaged. When you combine “Our agenda is very much the macro and micro pictures, you can see that there is an army of talent around open innovation.” out there looking to build their resumes or their balance sheets by work- ing on interesting challenges and projects. Andy Shilton As your organization opens up and crafts a formal external talent strategy, there are several ways external talent can help benefit your organization. 2
  • 3. Harnessing the Global Talent Pool to Accelerate Innovation Increased Speed: • External talent networks can form an expanded rolodex of After the Exxon Valdez oil spill experts that you can consult with to expand your knowledge on in Prince William Sound Alaska, a particular search area or market and give you a running start a method was needed by the instead of a standing one. Oil Spill Recovery Institute (OSRI) to break the viscous • You can use your external talent strategy to find existing solutions from outside your industry. One example of this is a tire company shear of crude oil under cold adapting existing technology for cutting cheese to cutting weather conditions to allow rubber. Another is InnoCentive client OSRI, who used concrete oil to flow to a pump inlet. construction principles for the purpose of oil spill cleanup (see Basically, the pumps could not sidebar). handle the near-solid oil sludge. A Challenge was posted on • To accelerate innovation and product development timelines, many InnoCentive.com and exposed companies strategically partner with external talent to advance their projects and help fight through roadblocks or work on other to a global community of components when the lead team is off the clock. Dissecting work hundreds of thousands of and distributing it to the individuals, groups, or partners that Solvers. Eight weeks later, many can best complete the work is an essential component of open solutions had been proposed, innovation strategy. but the winning solution was submitted by an Illinois chemist who once poured concrete Increased Success: over the summer to help a • You can form a relationship with a particular expert and work neighbor. The $20,000 award together to solve a problem, to evaluate a range of potential winning solution was based on solutions from internal folks, to tap expertise you lack currently a technique that had been used in your organization, or to add diversity of thought. for years to vibrate and move • You can use your external talent strategy to engage a large viscous concrete. As a result, the number of potential solvers on a tough problem. Through open oil industry solved a decades- innovation and crowdsourcing, Roche found a solution to a old problem within two months problem it had been struggling with for fifteen years by engaging of posting the Challenge to the InnoCentive global solver community. At the same time, the InnoCentive’s crowdsourced company validated that the approaches it had already tried were problem solver community. the logical and correct ones. • When you engage external talent, you can collect lots of little ideas from outside, and connect them internally, uncovering some really big ideas that properly applied and executed can lead to some great new breakthrough innovations. Roche found a solution to a problem it had been struggling Increased Learning: with for fifteen years by • An under-appreciated and under-utilized benefit of working with engaging the InnoCentive external talent is to use it to learn new problem solving techniques global solver community. At by analyzing how the external talent solved the problem, to learn the same time, the company new technical skills not held internally by having external talent validated that the approaches train internal talent, and by encouraging information sharing from it had already tried were the the outside-in from external talent working in different disciplines. logical and correct ones. Teamwork and Collaboration: • An increasing number of problem solvers are working together to solve challenges posed by organizations and this collaboration and teamwork is yielding higher quality solutions. Research by 3
  • 4. Harnessing the Global Talent Pool to Accelerate Innovation EMC into their own internal innovation challenges has shown that teams were more likely to successfully create winning challenge entries. InnoCentive, for instance, has responded to this behavior by creating more collaborative features for its global solver community to use in responding to challenges. Consider scale for a moment. A person delivering a ton of value does not need a ton of headcount anymore if they are employing an effective Two of the most important external talent strategy. In an era where organizations are focused on job skills in this new increasing productivity and output without changing the number of world of work will be the headcount (focusing on revenue or profit-per-head), smart employees ability of the individual and business units will increasingly focus on being a force multiplier – and the organization to getting more work done with the same number or even less headcount. deconstruct the work into portable units that Two of the most important job skills in this new world of work will be the can be executed by a mix ability of the individual and the organization to deconstruct the work into of internal and external portable units that can be executed by a mix of internal and external talent, talent, and construct and construct a project plan for distributing, aggregating, integrating, a project plan for and executing the component parts to achieve the overall project goal. distributing, aggregating, integrating, and executing But to maximize the efficiency and effectiveness of your work with the component parts outsiders – as well the output – you need to be strategic in your to achieve the overall approach because the speed of adaptation (your ability to adapt and project goal. integrate work from outside into the inside) will become more impor- tant. And the flexibility you show as an organization and the ability of your employees to execute under immense market and customer pressures will become increasingly important as well. You must be strategic because ultimately you want to design scalable external talent strategies, policies, and processes. Section 2. How Leading Organizations Manage Their Open Innovation and Crowdsourcing Efforts Although there are simple and cost effective ways to jumpstart your efforts – for example, leveraging a company like InnoCentive to host Although there are prize-based challenges in order to rapidly find solutions to your most simple and cost effective pressing problems – leading organizations that wish to truly embrace ways to jumpstart your open innovation and crowdsourcing do so through careful planning. efforts – for example, When seeking to engage external talent, one of the first of many questions leveraging a company you must first ask yourself is: Why are we doing this? What do we hope like InnoCentive to host that external talent can achieve for us that our internal talent cannot (or prize-based challenges should not) achieve, and how do we integrate the two together? in order to rapidly find solutions to your most pressing problems – The second question leading organizations in open innovation ask them- leading organizations that selves is: Why will they care? And one good place to start in answering wish to truly embrace this difficult question is to ask: What kind of organization do you have? Do open innovation and you have a product-driven organization like Microsoft that is very much crowdsourcing do so organized around products? Do you have a customer-driven organiza- tion like Hallmark that is organized around customer moments instead of through careful planning. around products? Or do you have a purpose-driven organization? While 4
  • 5. Harnessing the Global Talent Pool to Accelerate Innovation it does not technically matter what kind of organization you have, the key is to find something that not just your employees will engage with, but One must be careful not that your customers and partners will engage with as well. This could be to become too focused purpose, but it could also be love for a brand or a well-designed, emotionally on ideas. Great ideas fail -connected product. all the time – poor value Other questions to ask: translation, poor value access, poor timing, and • In our organization, where does open innovation fit in our overall so on. Rather, getting innovation efforts? to creative solutions to • How are we looking to connect? problems and challenges is key to innovation success. • Do we want to build our own proprietary global sensing network that allows us to pull together insights and ideas from lots of different types of sources in different locations? • Or, do we want to utilize external service providers like InnoCentive to get up and running faster or go wider than our own proprietary networks can go? • Are we looking for crowd labor or creativity, or are we looking to engage in open innovation or civic engagement in creating innovative solutions? • Are we looking for possible solutions to problems that we have already identified? • Are we looking with current and potential suppliers at the Alph Bingham and intersection of what is needed and what is possible? Dwayne Spradlin identified ten different • Or, are we looking more broadly to identify new insights through which we can drive our innovation efforts? resourcing options in their book The Open Note that one must be careful not to become too focused on ideas. Great Innovation Marketplace: ideas fail all the time – poor value translation, poor value access, poor timing, 1. Internal and so on. Rather, getting to creative solutions to problems and challenges is key to innovation success. 2. Contract Research Organization Another important questions is: What tool is best for this problem? We have all heard the saying that if you have a hammer every problem looks 3. Electronic Requests like a nail. Well, when it comes to open innovation and crowdsourcing, there for Proposal (e-RFP) are lots of tools that we can use, but only if we first understand the nature 4. Off-Shoring of the work we are trying to get done. Is it a creative piece of work that we can put out to a community like 99Designs? Or do we just need someone 5. Crowdsourcing, to help us temporarily through a place like PeoplePerHour? Or, perhaps we Ideation are trying to solve problems, both big and small, and want to leverage a company like InnoCentive to create and tap into both internal and external 6. Crowdsourcing, communities of problem solvers to accelerate our innovation efforts. Finished Product 7. University Contracts Smart organizations identify the different work and challenge scenarios they expect to face over time and then identify which resourcing 8. Consulting option(s) make the most sense for each scenario. They then work to form the relationships and agreements necessary with firms like InnoCentive 9. Right of First Refusal to make sure that they will have reliable resources in place for when 10. Joint Venture they seek to utilize a particular type of resource to tackle the matching challenge or work scenario. 5
  • 6. Harnessing the Global Talent Pool to Accelerate Innovation Successful organizations have a plan for how they are going to interface with external resources and how they are going to bring ideas and potential “We decided to embrace solutions in house for further development and launch. What will the open innovation at cultural obstacles be? You must consider what the potential cultural obstacles Psion to be faster might be to engaging external talent in your organization. P&G had to work and competitively very hard to change of its culture from ‘Not Invented Here’ to one where unpredictable.” people embrace new things being ‘Proudly Found Elsewhere.’ John Conoley Some of the reasons that you may face resistance in implementing an external talent strategy include beliefs that career advancement comes from increasing the number of headcount managed, a fear of failure, a lack of management support, and people not wanting to go outside their com- fort zones (‘I get paid to manage and make things incrementally better’). But when people start to hear stories about some of the successes, see some proof of the benefits, and see other people get recognized for utilizing external talent, acceptance of an external talent strategy starts to spread. And when senior leadership or middle management start talking about what is being done with external talent, and people using external talent start training their peers on what they are doing, you know people are starting to fully embrace your external talent strategy. So what do leading organizations do to encourage the successful use of external talent? They build a solid foundation: 1. Seek to understand where the challenges will lie in the transformation 2. Have passionate business owners When people start to hear stories about 3. Secure top level support some of the successes, 4. Make a long term commitment to the use of external talent see some proof of the benefits, and see other 5. Negotiate master agreements with external talent providers at people get recognized for the center utilizing external talent, acceptance of an external 6. Create a common language of innovation and external talent talent strategy starts 7. Implement the processes and systems to manage and measure to spread. innovation efforts They get strategic: 1. Create an external talent strategy 2. Make a plan for achieving the strategy 3. Attach goals to the strategy (e.g., P&G’s 50% goal) 4. Communicate the goals of the strategy and measure goal achievement 6
  • 7. Harnessing the Global Talent Pool to Accelerate Innovation They focus on communications and ownership: “Innovation is fostered 1. Do not underestimate the importance of communications, education, and dialogue by information gathered from new connections; 2. Create guidelines for when and how to use different external from insights gained talent sources by journeys into other disciplines or places; 3. Have someone own and manage the external innovation efforts from active, collegial 4. Have owners and champions in place in different business units networks and fluid, open or product groups boundaries. Innovation arises from ongoing 5. Educate employees on how to engage owners and champions circles of exchange, where information is not just accumulated or stored, They continuously reinforce their efforts: but created. Knowledge is generated anew from 1. Recognize and reward those who go outside connections that weren’t 2. Weave external focus into internal systems (e.g., innovation there before.” system prompts) Margaret J. Wheatley 3. Get cross-functional input into problem definition and author of Leadership and challenge formation the New Science 4. Make resources available for integration 5. Work to make the organization more flexible and adaptable In addition, successful organizations understand that it is about making and maintaining connections and community – you build it for when you need it, instead of building it when you need it. Successful organizations understand that attracting and managing external talent is as important as finding and hiring the best internal talent, and are changing their budget allocations to fit this new paradigm. The role of HR in the near future will not be just to recruit, develop, and manage staff, but also to build and curate talent pools. The HR profession will have to build new core competences in network orchestration and managing talent – no matter where the talent lives (inside or outside the organization). It is time to start preparing. The role of HR in the near future will not be just to recruit, develop, and Before moving on to the final section, let us look at a few brief examples manage staff, but also to of different companies engaging external talent for business success and build and curate talent one case study of a leader pushing farther: pools. The HR profession • Threadless decided to base their whole business on external talent will have to build new and build a community of designers and customers that they could core competences in leverage to come up with the t-shirt designs that they sell. network orchestration and managing talent – no • Quirky has taken the Threadless model of utilizing external talent matter where the talent to simultaneously make invention accessible and build a consumer lives (inside or outside products company. You submit your idea, the community curates the organization). it, the company evaluates it, and actually produces and sells the chosen inventions online, and even at a handful of retailers. 7
  • 8. Harnessing the Global Talent Pool to Accelerate Innovation • P&G went outside with a plastic technology and created a joint venture with competitor Clorox that focuses on trash bags, food “There is the trivial – my storage, and related areas. apologies to Dell and • Intuit uses its Collaboratory web site to connect with entrepreneurs Starbucks – where we and to publicize their open innovation challenges, and their Labs use the crowd to provide web site to engage with the developer and customer communities feedback on product to get immediate feedback on some of their experiments in order features. And there is to engage in some level of co-creation. the profound – where we use adjacent areas • Psion Teklogix has built one of the more robust corporate open innovation communities – Ingenuity Working – complete with a of expertise to cast new video from their CEO front and center. light on scientific and industrial challenges (the • SAP has started The Global SAP Co-Innovation Lab Network (aka InnoCentive model).” COIL) with HP, Intel, NetApp, Cisco, VMware, and F5 Networks to facilitate project-based co-innovation with its members and to Haydn Shaughnessy enhance the capabilities of SAP’s partner and customer ecosystem Forbes through an integrated network of world-wide expertise and best- in-class technologies and platforms. • MyStarbucksIdea.com is an example of engaging the creative energy outside your organization that most companies will not want to follow. They throw things wide open for all idea submissions, not focused on any particular challenges, for all to see. As a result, Starbucks exposes the company to the risk of brand equity destruction from not following through on suggestions. At the same time, this approach provides free market research for competitors and creates a lot of sifting and communications work for internal resources. Procter & Gamble (P&G Connect + Develop) – A Case Study (A Leader Pushes Forward) P&G strives to improve workforce productivity by controlling headcount while also improving revenue-per-head. It is also moving from a supplier mindset where P&G dictates goals and price to a goal mindset where there is possibly shared risk with partners (i.e., the partner is willing to invest because of the scale that P&G brings). 8
  • 9. Harnessing the Global Talent Pool to Accelerate Innovation P&G has been working for over a decade to establish itself as a partner of choice and has recognized that it is important to have a stable of partners P&G has worked for years with whom it can collaborate. The company counts on its precious to move from a internal resources to not only do work, but also to build capabilities, to ‘Not Invented Here’ know what advancements are being made outside, to track promising mindset to ‘Proudly Found opportunities being developed externally, and so on. P&G has worked Elsewhere’ mindset. for years to move from a ‘Not Invented Here’ mindset to ‘Proudly Found Elsewhere’ mindset. This has required: • Top management deciding and overtly communicating that this is important • Making it a part of the corporate strategy • Coupling its external pursuit with a goal – such as ‘50% of new products must involve outside collaboration’ • Weaving it into the systems to get it into the culture (e.g., tools should prompt you to ask whether you have considered open innovation, who are you using, and enter this into the historical record) • Rewarding and recognizing open innovation efforts in a way that puts them on par with internal innovation efforts P&G thinks of its internal resources as the castle keep, and develops local resources that it can turn on as needed. It has a tiered system of partners based on cost, location, and capabilities. The company also maintains its own collection of 85 networks (many proprietary, but also including P&G’s Connect+Develop and InnoCentive’s global solver community). P&G also has an internal search process, which involves resources focused on creating ecosystems locally in different geographies around the world – which it can then mine and look for solutions, and some of those turn into deals (managed by deal managers). As it looks into the future, P&G will balance the situations where it looks to partners to be their R&D muscle in a particular area (allowing them to minimize their internal investments in that area) with areas where the partners not only develop that which P&G asks for but to also proactively To support the ante up and bring ideas to the company where the partners develop the increasingly internal/ idea and help to share the risk. external flavor of its R&D efforts in the future, more To support the increasingly internal/external flavor of its R&D efforts in the of P&G’s R&D roles will be future, more of P&G’s R&D roles will be focused on the integration of external focused on the integration projects – meaning that increasingly the company will value for these roles of external projects – broad skills across functions as well as soft skills to foster a collaborative meaning that increasingly approach. At the same time, for P&G to continue to be successful, it feels the company will value that it must be agile (which is why agility was added to its employee suc- for these roles broad skills cess drivers). And finally, despite the increasing involvement of people across functions as well from outside in its new product development, there must be no decrease as soft skills to foster a in the presence of passionate owners for the business – people who work collaborative approach. really hard and feel that they are making a difference for consumers. 9
  • 10. Harnessing the Global Talent Pool to Accelerate Innovation Section 3. Strategies for Attracting Talent to Your Organization’s Innovation Efforts “Using social media tools and sites to ask questions Having an external talent strategy and using it to build an external talent is part of a broader trend community is going to become a crucial component of the continued called crowd-sourcing. This success of your business. There is an innovation war beginning, and you is tapping into the collective need to make sure you are fighting it outside your organization — not inside. intelligence of the public to complete a task. One of the When it comes to attracting talent to your organization’s innovation efforts, best-known examples of the basic rules of social media are very relevant. Listen first, see what is crowd-sourcing is important to people and where value is being created (and where it is miss- InnoCentive, which uses ing), then add value to the conversation. Being successful in the innovation crowd-sourcing to solve aspects of social business requires an organization to establish a place and a corporate research reason for mutually beneficial dialogue to occur. A typical staffing strategy problems.” focuses on finding and bringing the very best talent inside the organization (talent ownership). In contrast, a successful external talent strategy must Steve King instead act more like the sun, attracting external talent into the orbit of US News and World Report your organization so that you can build and maintain a relationship with them without bringing them into the organization (talent attraction). Organizations that continue to thrive will develop the ability to: 1. Harness and tap into expert communities (like InnoCentive’s network of solvers) 2. Identify and gather technology trend information, customer insights, and local social mutations from around the globe 3. Mobilize the organization in organic ways to utilize resources and information often beyond its control 4. Organize and execute production and marketing predictably and efficiently in the middle of all this complexity As a result, your external talent strategy must accumulate energy and then unleash it in a focused direction. And part of the way to do that is by establishing a common language of innovation. The process begins by defining what innovation means to your organization. Consider looking at this as the WHO – WHAT – WHEN – WHERE – WHY – HOW of innovation: • WHO is to be involved in your innovation efforts? • WHAT does innovation mean to you? WHAT types of innovation are you focused on? • WHEN will you be looking for innovation input? • WHERE can people go to find out more? WHERE do they go to contribute? • WHY should people want to participate? • HOW can they participate? 10
  • 11. Harnessing the Global Talent Pool to Accelerate Innovation A working definition of innovation is: “Innovation transforms the useful seeds of invention into solutions valued above every existing alternative A working definition of – and of course widely adopted.” It is important to mention that in the innovation is: “Innovation same way that innovation is all about value, building a successful external transforms the useful talent strategy and attracting talent to your organization is also all seeds of invention into about value and these same components. You must try to identify as an solutions valued above organization what resources you already have (or could create) that will every existing alternative have some value to the external talent community that you are trying – and of course widely to attract. These sources of value to the external talent community adopted.” could be financial, informational, educational, social, or come from another store of value. Building an External Talent Community Universities National Entrepreneurs Laboratories Alumni and Suppliers Retirees Organizations Partners Agencies Professional Customers Associations Copyright: http://bradenkelley.com It is also important to give people a reason to want to connect with you and to stay close – and yes, hopefully contribute over time. In addition to In addition to identifying identifying the value that you can bring to the external talent community, the value that you can you must also identify which connection points will multiply the attractive bring to the external talent power of the sources of value you choose to focus on. There are three community, you must also primary connection points to consider: identify which connection 1. Passion: One of the ways that you can attract people to your points will multiply the innovation efforts is to leverage the power of passion. Seek to attractive power of the identify what people are passionate about when it comes to your sources of value you company or your products. Passion can be extremely contagious. choose to focus on. Is there a way that you can inject the passion that people may have for your company or products into your external talent community? Why might people want to help you innovate? 2. Purpose: Another connection point to consider is to tap into the power of purpose. Not all organizations are committed to serving a larger social purpose, but all can consider introducing elements of public outreach or philanthropy that the external talent community 11
  • 12. Harnessing the Global Talent Pool to Accelerate Innovation can engage with and feel good about contributing to. Are you building walls to keep people out? Or are you creating something When you bring the right that people can feel a part of? sources of value together 3. Fun: Do not forget the power of fun. One of the ways of connecting with the right people to your external talent community is to have something fun connection points, that for people to do. Recognize people for their participation in your is when the magic external talent community in fun and different ways to keep them happens and a interested and engaged, and have some fun reinforcing the common community starts to language of innovation that you share with people. grow its membership and participation. When you bring the right sources of value together with the right con- We are not just seeking nection points, that is when the magic happens and a community starts to build a community, to grow its membership and participation. We are not just seeking to but to activate it as well build a community, but to activate it as well (to get people engaged, (to get people engaged, contributing, discussing, connecting, etc.). Ideally what we are trying to contributing, discussing, do in our interactions with our external community is to engage them at connecting, etc.). as high a level as possible to maximize our chances of creating innovation with the external community in much the same way that we try to unlock higher levels of employee engagement. Insights Innovation Flexibility Passion Fun Purpose   Creativity Trust Initiative Respect Key Things to Remember: 1. Carefully craft your language and Intellect Leadership communications 2. Give people a way to Diligence Management connect with you Fear Obedience Greed 3. Do not just look to extract value from your The Innnovator’s Framework network, think about what value you can put into it Doing these things may seem like a lot of work and communication upfront, but it pays off, because you give people a much better idea of . Sometimes that value 4 how to engage and a much stronger foundation on top of which their is connecting external creative and innovative inputs and ideas can thrive. participants not just to you, but to each other As organizations do the hard work of building an external talent strategy and begin laying the foundation for open innovation success, the smart 5. Build your network ones (no matter their level of innovation maturity) leverage the incred- before you need it, ibly diverse and deep external talent networks that companies like not after InnoCentive have spent years building, cultivating, and curating. Solver 12
  • 13. Harnessing the Global Talent Pool to Accelerate Innovation communities like InnoCentive’s are purpose-built for solving difficult challenges with global implications, and tapping into existing talent networks helps you get your external talent strategy moving faster, while also providing a level of quality and diversity that will always be valuable, even as your open innovation efforts mature. Conclusion This paper covered several reasons why having an external talent strategy is becoming increasingly important, and how building and properly InnoCentive and the executing one can help you harness the global talent pool to accelerate author of this paper, innovation. It also provided an in-depth look at how leading organizations Braden Kelley, hosted manage their open innovation and crowdsourcing efforts – complete a webinar on this very with checklists to get you off to a strong start in your own efforts. And topic. Click here to finally, we have looked at some frameworks and strategies that you can access the replay. leverage to attract talent to your organization’s efforts. The only thing left is to get started. In this new talent attraction world, will your organization be one of those to master the art of building and maintaining talent communities that keep talent connected to your organization even when they are not employed by it? You must consciously create and execute an external talent strategy if you have any hopes of succeeding in what will become an increasingly Will you adapt your competitive marketplace for external talent. Will you establish yourself as organization to encourage the partner of choice in your industry as your competitors begin to move the development from a fortress mentality to embrace the increasingly integrated global of employees that are economy and interconnected web of suppliers and distribution channels? increasingly good at being force multipliers Will you adapt your organization to encourage the development of by effectively leveraging employees that are increasingly good at being force multipliers by effec- your external talent tively leveraging your external talent communities to get more work communities to get more done faster, more cost effectively, and with less risk? work done faster, more cost effectively, and Will you work to embed the resource flexibility and availability into your with less risk? organization necessary to quickly and effectively integrate promising ideas, products, and services into your organization and its operations and marketing machinery? If you are already started down your innovation path, it is not too late to take a step back and define a common language of innovation and to identify the sources of value and primary connection points around which to build strong external talent communities. There is no time like the present to stoke your innovation bonfire, using the global talent pool to get it burning hot and to accelerate your innovation efforts faster than those of your competition. 13
  • 14. Harnessing the Global Talent Pool to Accelerate Innovation What are you waiting for? Rally your leadership and build your external talent strategy. InnoCentive and other service providers stand ready to For more information help you solve your difficult innovation challenges and build your talent on how you can easily network to accelerate your overall innovation capacity. run your own Challenges to rapidly solve problems Authored by: Braden Kelley and accelerate your innovation outcomes, visit www.innocentive.com or call 1-855-CROWDNOW to speak directly with an Innovation Sales Consultant. Braden Kelley is a Social Business Architect, innovation trainer, and the author of Stoking Your Innovation Bonfire. He has been advising com- panies on how to build online communities, engage external talent, and improve their innovation success since 1996. Braden writes and speaks frequently about innovation and social media. He has maximized profits for companies while living and working in England, Germany, and the United States. Braden earned his MBA from top-rated London Business School and is an Innovation Excellence co-founder. Quote Sources: Foodmanufacture.co.uk, 15inno.com, Leadershipnow.com, Forbes, US News and World Report About InnoCentive, Inc. InnoCentive is the open innovation and crowdsourcing pioneer that enables organizations to solve their key problems by 610 Lincoln St, Suite 125 connecting them to diverse sources of innovation including employees, customers, partners, and the world’s largest problem Waltham, MA 02451 solving marketplace. InnoCentive’s proven Challenge Driven Innovation methodology, community of millions of problem USA Solvers, and cloud-based technology platform combine to fundamentally transform the economics of innovation and R&D through rapid solution delivery and the development of sustainable open innovation programs. Leading commercial, government, and nonprofit organizations such as Booz Allen Hamilton, Eli Lilly and Company, Life Technologies, NASA, Phone: +1-978-482-3300 nature.com, Popular Science, Procter & Gamble, Roche, Rockefeller Foundation, and The Economist partner with InnoCentive to solve problems and innovate faster and more cost effectively than ever before. For more information, visit Toll free: +1-855-CROWDNOW www.innocentive.com or call 1-855-CROWDNOW. www.innocentive.com InnoCentive and InnoCentive Challenges are registered trademarks of InnoCentive, Inc. Other product or service names mentioned herein are the trademarks of their respective owners. 2012-0213